half of the fiscal cliff equation. however, it's only a deal in principle. the deal raises the tax rate from 35% to more than 39% for households making more than $450,000 a year. but it puts off decisions on $110 billion in across the board spending cuts to military, and domestic programs. we get more now on capitol hill. >> reporter: a very happy new year for the senate, closing out 2012 with a deal. hammering out a compromise on spending cuts. deal or no deal, the u.s. is destined to go over the cliff, because the house convened monday night. earlier in the day, tough words for republicans. >> if republicans think that i will finish the job of deficit reduction through spending cuts alone, if they think that's going to be the formula for how we solve this thing, they have another thing coming. that's not how it's going to work. >> reporter: the deal will extend unemployment benefits, and bring back higher clinton era taxes on top earners. an increase in extensions from households earning $250,000 a year, reportedly t